Consumer-to-business, also referred to as C2B, is a business model where consumers can provide value to a business by selling goods, products, or services. The C2B model is considered the opposite of the more traditional B2C (business-to-consumer) model, where businesses sell products or services to consumers.
C2B is a relatively new method of ecommerce that is rapidly growing and evolving. An example of modern-day C2B ecommerce is freelancers selling their services on sites like Fiverr. So, keep reading, and we’ll give you an in-depth look at how C2B ecommerce can impact your reselling hosting business.
Key Takeaways
- The C2B, consumer-to-business, model refers to the process of consumers selling goods, products, or services directly to businesses and is considered the opposite of the B2C model.
- Consumers can list services or products online and establish their own rate or price before completing a C2B transaction with a business.
- The C2B ecommerce model offers increased levels of flexibility, independence, cost-effectiveness, and improved product development.
- Common uses of the C2B model include influencer and affiliate marketing programs, refer-and-earn schemes, as well as the business of freelancers, contractors, and independent workers.
What Is C2B eCommerce?
Business models are constantly evolving and changing with the times. In the past, the term “business†itself mostly coincided with what came to be referred to as B2C, or business-to-consumer. As the internet gained popularity in the 1990s, ecommerce sites began to crop up that sought to sell products and services directly to consumers. Sites like Amazon grew into industry titans, and B2C ecommerce flourished.
However, B2C isn’t the only prevalent business model out there. That’s where C2B ecommerce comes into play. C2B, or consumer-to-business, takes the B2C model and reverses it. Instead of a business supplying a product or service to a consumer, the consumer supplies value to a business.
The Fundamentals Of C2B eCommerce
Through C2B ecommerce, independent workers or freelancers can often offer products or services to a business in exchange for benefits, such as payment. With the rise of social media and online marketplaces, it’s become increasingly straightforward for consumers to sell their own goods to businesses.
This dynamic shift has changed how many businesses operate, opening the door for many consumers. And even businesses have greatly benefited from the way the C2B model connects them to consumers on a deeper level.
How C2B eCommerce Changed The Game
Traditionally, marketing was a one-sided conversation where businesses would shell out money to advertise their products or services to an audience. This old-fashioned approach to marketing was relatively ineffective, as businesses weren’t always able to successfully reach their target audience.
But nowadays, by utilizing the extensive spread of the internet, consumers can reach a much greater audience than ever before. This also allows consumers to sell directly to businesses, thus avoiding fees and commissions normally found on traditional ecommerce platforms.
How Does C2B eCommerce Work?
The process of C2B ecommerce transactions can typically happen over several phases. And though the journey might be different for each individual or business engaging in C2B practices, the general flow always remains the same.
When it comes down to it, C2B ecommerce is a growing trend that can benefit both businesses and consumers alike. And knowing how to properly utilize C2B ecommerce is the first step in maximizing your own business’s potential.
Service or product listing
C2B ecommerce involves consumers selling products, goods, or services online. This is the foundation of this entire business model. And to be able to successfully market their value, consumers need to list their product or service on an online platform.
These listings can include information such as product features, prices, and enticing images or videos. Popular online C2B ecommerce online platforms include Fiverr, Airbnb, Upwork, Kickstarter, and 99designs.
Online marketing and promotions
After a product, good, or service is successfully listed online, a consumer can begin to market their value. This is an integral step, as this is how consumers can attract potential buyers or investors.
It’s common for most C2B ecommerce marketing and promotion to happen on social media platforms, forums, or online classifieds. But social media is by far the most critical method for successful service and product promotion.
Lead generation
In addition to online and social media marketing, consumers must generate leads successfully. By attracting businesses interested in their value, consumers can utilize email marketing, paid advertising, and content marketing.
Even back in 2021, 91.9% of companies with more than 100 employees in the United States used social media for marketing and lead generation. And that number is only growing.
Negotiations, payments, and delivery
When a consumer lands an interested client or business, there is typically some negotiation and agreement on pricing or delivery. Then there is subsequent payment and product or service delivery, with the delivery method depending on the type of completed and agreed-upon service or product.
Because C2B has a much greater degree of freedom than other standard business models, both parties are able to benefit from things like price negotiation. And for independent workers or freelancers, this is a huge plus.
Feedback
Lastly, a C2B ecommerce transaction concludes with both parties providing feedback, ratings or reviews, and suggestions or comments. This is an essential aspect of the C2B model, as it helps build trust and establish a solid reputation for future transactions.
Though this part of the C2B model is generally positive and can help consumers build a solid reputation, it can be a con at times. Negative feedback or reviews can end up damaging an individual’s business.
Pros And Cons Of C2B eCommerce
Any business model in today’s world has its own pros and cons. And the same goes for C2B ecommerce.
So, let’s take a look.
| Pros of C2B ecommerce | Cons of C2B ecommerce |
| Flexibility | Unpredictability |
| Cost effectiveness | Negative customer feedback or reviews |
| Independence | Legal issues |
| Product development |
Pros Of C2B eCommerce
One of the reasons why C2B ecommerce has gained such profound popularity is that it provides consumers and businesses alike plenty of appealing benefits, such as:
- Flexibility: C2B ecommerce allows sellers and buyers alike to set their terms with an increased level of flexibility. Parameters such as service duration, payment frequency, or product supply dates can be determined in a way that suits both parties.
- Cost-effectiveness: Aspects like payments can be automated and therefore facilitate streamlined connections between consumers and businesses. This can be much more cost-effective than other business models.
- Independence: As opposed to more traditional business models, consumers engaging in C2B ecommerce can provide their products or services without creating a full-fledged business. There is a low barrier of entry, and it’s relatively easy to get involved in C2B ecommerce. All you need is a product or service, and it’s easy to sign up on sites like Fiverr to find a client base.
- Product development: The C2B ecommerce model relies heavily upon feedback and reviews. And this abundance of feedback gives consumers more opportunities to develop their products and services accordingly.
Cons Of C2B eCommerce
Even the best practices and models have some downsides. C2B ecommerce has a couple of cons, including:
- Unpredictability: C2B ecommerce is rather new and can be considered relatively unstable when compared with traditional models like B2B (business-to-business) and B2C (business-to-consumer) which have been successfully utilized for years..
- Negative customer feedback or reviews: An essential aspect of C2B ecommerce is feedback, ratings, or reviews given to and from each party at the end of a transaction. But unwanted criticism can or negative comments, reviews or feedback could be potentially damaging to a party’s reputation and relationships.
- Legal issues: Because C2B ecommerce is so open, many entrepreneurs, freelancers, and businesses can get caught up in the fine print before realizing it. eCommerce businesses can face issues with data protection and privacy laws, consumer rights, taxes, and domain names.
Examples Of The C2B Model
Now that we know the fundamentals of C2B ecommerce and how it fits in our modern world, it’s time to break down some classic C2B business model examples.
A major benefit of C2B ecommerce is the heightened level of trust that consumers have in other consumers. Consumers are less likely to trust big businesses. Hence, C2B ecommerce is much more appealing concerning brand loyalty and awareness.
In today’s world, consumers care about where their products and services come from. They need to be able to trust the brand behind it. This is why many businesses utilize influencer and affiliate marketing programs.
C2B Affiliate And Influencer Programs
Through influencer and affiliate marketing programs, businesses can utilize the trust, audience, or knowledge that an individual has. And they can use this trust to market and promote a product.
Businesses usually strike up a deal with an individual in order for that person to promote a product or service. For example, a skincare company might send a social media influencer some free products if the influencer promotes those products on their social media accounts.
A popular example of affiliate advertising is Google AdSense, a program where high-traffic websites can earn money by displaying ads for products and services through Google.
This is also an affiliate marketplace, where consumers can get commissions when their website visitors click their unique affiliate offer link.
Freelancers And Contractors
One of the most popular C2B examples in ecommerce is found in independent workers. Freelancers, contractors, and gig workers can be matched to businesses needing independent workers using the C2B model. Typically, freelancers and contractors can use online platforms to establish their service and parameters such as price.
1. Fiverr
Fiverr is a C2B site that is one of the world’s largest digital marketplaces for services. Buyers and sellers alike can benefit from its streamlined model. Sellers can post a “GIgâ€, which would include information like the type of service they’re offering and the price. Buyers can then purchase their services through Fiverr.
2. Upwork
Upwork is a marketplace similar to Fiverr, in that it connects individuals to businesses and other individuals in need of their services. Individual workers can find demand for services like writing, web development, and graphic design.
Reverse Public Auctions
Unlike traditional online auctions in which a seller lists an item that goes to the highest bidder, in a reverse auction, sellers bid for prices at which they will sell their goods or services. In the end, the contract for the good or service will go to the seller willing to accept the lowest payment.
There are almost endless examples of the C2B model and C2B ecommerce. And as businesses adapt, they will keep evolving.
Use-Cases Of C2B In eCommerce Business
There are plenty of C2B ecommerce examples. But perhaps some of the most prevalent have to do with how we view products as consumers.
Let’s look at a few key use cases of C2B ecommerce.
Influencer Marketing
Both social media and traditional media are full of influencers and celebrities who can vouch for certain products or brands. Consumers tend to trust the opinion of influencers and celebrities, so businesses use that to their advantage.
Through influencer marketing, businesses may offer influencers or celebrities free services or products in exchange for their endorsement and promotion. And through this exposure and increased brand awareness, sales can soar.
Affiliate Marketing
Influencer marketing involves the personal appeal of an individual, while affiliate marketing is more concerned with a company’s, website’s, or individual’s marketing knowledge and audience.
An affiliate marketer can choose a product and then promote it as they see fit to their own audience. In return, the affiliate marketer usually reviews a commission from affiliate links. Companies can offer some type of commission or payment in return for product recommendations and promotions.
Popular affiliate marketing programs include
Google Ads
Google Ads is a very popular way for individuals, websites, and companies to engage in the C2B model. (Keep in mind that Google Ads and Google AdSense are not the same programs.)
It’s not a surprise to say that ads are very powerful for business and company success. And with Google Ads, it’s easy for services and products to get more visibility. Under a pay-per-click model, individuals can use Google Ads to successfully advertise their products and services to a larger audience.
Refer-And-Earn
A popular example of the C2B model is refer-and-earn programs. Referral programs typically reward individuals for recommending their products or services to others. And these rewards can be anything from an account credit to eGift vouchers.
It’s common for companies or businesses to have some sort of referral program. Popular referral programs include
- Coinbase ($10 per referral)
- Paypal ($10 per referral)
- Fiverr (Up to $100 in Fiverr Credits)
- Acorns ($5 per referral)
- T-Mobile ($50 per referral)
- Xfinity (up to $175 per referral)
C2B eCommerce Trends
It should go without saying that C2B ecommerce is only going to keep growing in popularity. Even after Covid, ecommerce jumped up a staggering 55%.
So, now that we’ve entered 2023, what does the future of C2B ecommerce look like?
- Continued growth: Worldwide ecommerce sales are expected to hit $7.5 trillion by 2025. C2B ecommerce is here, and it’s not going anywhere.
- Rising popularity of mobile shopping: Ecommerce platforms and sites must look great on all devices and ensure their mobile views are brilliant.
- Domination of omnichannel: Sellers need to ensure all representations of their brand, service, and product are uniform and cohesive. And as Covid restrictions lighten up, physical stores must keep up with this trend.
- Prioritization of customer service: Sellers, freelancers, and individuals need to ensure they maintain a high level of customer service even after a sale. It doesn’t end when the transaction is completed. And in 2023, this will have more of an effect on their business than ever.
- Subscription-based ecommerce: Everyone knows it’s cheaper to retain existing customers than to find new ones. Utilizing a pre-existing client base is critical for anyone in the ecommerce industry. And a great way to do that is with subscription-based services.
Wrapping Up
C2B is an increasingly popular business model that directly connects the goods and services that consumers offer to businesses. Unlike the B2C model, C2B offers increased independence and flexibility for the consumer and better prices and products for businesses.
C2B ecommerce typically shows up as influencer and affiliate marketing programs like Google AdSense and referral programs for individuals. Even freelancers, contractors, and independent workers are a part of the C2B model.
Now is the perfect time to start if you’re looking to get involved in the C2B world. And with HostAdviceby your side, it’ll be easier than ever to be set up for success.
Next Steps: What Now?
Looking to make money online or dive into web hosting? C2B ecommerce happens online. Here’s the best place to start.
- Build a captivating and reliable website to establish a solid foundation.
- Select the best web hosting to make your vision a reality.
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